Grandchildren next to miss out if credit crunch worsens

The credit crunch may soon prevent grandparents from showering their grandchildren with treats, it has been revealed.

Research conducted by Saga shows that men and women over the age of 50 are being forced to reduce their expenditure in the wake of the credit crunch, rising energy bills and inflation.

Women have been affected more than men, with 83 per cent of the former and 77 per cent of the latter admitting to changing their lifestyles to suit the current economic climate.

While grandparents have not altered their propensity to spoil their grandchildren, Andrew Goodsell, chief executive of Saga, believes they might have to soon if their financial position worsens.

"With rising food and fuel prices people are having to make savings where they can," he commented.

"However grandparents seem determined to insulate their grandchildren from the current economic pinch and, although they may cut back themselves, treats for their grandchildren will be one of the last things to go."

One thing that grandparents shouldn't scrimp on is home insurance - as a burglary or damage to a home could be economically disastrous without adequate cover.

23/07/2008 17:48:25